3. Explain the importance of each of the following issues in the context of bond securities:

(a) Interest rate risk

(9)

(b) Indentures

(9)

(c) Ratings

(8)

(d) Clean v Dirty prices

(8)

(e) Zero coupons

(8)

(f) The Fisher effect and the difference between real and nominal returns

(8)

(50)